SiriusXM will acquire Pandora in an all-stock transaction valued at approximately $3.5 billion, the companies announced Monday morning.
According to the announcement, the deal will create the world’s largest audio entertainment company, with more than $7 billion in expected revenue in 2018. It also moves SiriusXM and its parent company, Liberty Media, aggressively into the streaming market. The transaction is expected to close in the first quarter of 2019 and is subject to approval by Pandora stockholders, expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and certain competition laws of foreign jurisdictions and other customary closing conditions. In June of last year, after months of circling, SiriusXM struck a deal to invest $480 million in Pandora. The cash purchase stock gave the satellite radio company a 19% stake in Pandora, and included a provision to curb SiriusXM’s ability to take over the entire company by limiting SiriusXM from acquiring more than 31.5% of Pandora without the approval of the Pandora board. In an interview at Goldman Sachs’ Communicopia conference earlier this month, Pandora CEO Roger Lynch gave no indication that the deal was in the works, saying only that since the purchase Liberty has been involved “on a board level and as an investor, they have not been involved at an operational level.”
0 Comments
Leave a Reply. |
what's
|